Friday, September 4, 2009

The writing is on the wall; if you are emotionally attached to a hyper-macro-coupling theory you may want to brace yourself. As far as nationalism(via territorial states) remains the cornerstone of political power, look east; China is the new U.S. - the U.S. Is the new U.K.

The second article is particularly interesting. Why would a nation, that is admittedly seeking out hard assets and the means to produce them, with a gigantic foreign reserve in an unstable currency which is continually under attack by its issuer, be pushing its billion + citizens to buy 'monetary relics'? Do the Chinese power-elite not desire empire? Do they not desire a prosperous populace of producers to tax and control? Do they not seek a global monetary and balance-of-payments/reserve system that is in their people's best interest, rather than one that subsidizes and supports the belligerence, cupidity, and decadence of a Western (American) empire? Do you really think Dollar Hegemony will last forever?

Or, do we skip Asian Regional Dominance altogether and head right towards a truly 'Global-Order' ?

Hong Kong Recalls Gold Reserves, Touts High-Security Vault

"HONG KONG (MarketWatch) -- Hong Kong is pulling all its physical gold holdings from depositories in London, transferring them to a high-security depository newly built at the city's airport, in a move that won praise from local traders Thursday.

The facility, industry professionals said, would support Hong Kong's emergence as a Swiss-style trading hub for bullion and would lessen London's status as a key settlement-and-storage center.

"Having a central government-sponsored vault would create a situation where you could conceivably look at Hong Kong as being a hub, where metal could be traded for the region,""

"The report notes that China's Central Television, the main state-owned television company, has run a news programme letting the public know how easy it is to buy precious metals as an investment...

What appears to have happened in China is a total relaxation of strictures on holding precious metals by the individual with the government pushing gold and silver as an investment option, seemingly at every opportunity. This is a far cry from the situation only a few years ago where the distribution of gold and silver was strictly controlled. Now, the Thunder Road Report notes that every bank will sell gold and silver bullion bars in four different sizes to individuals and gold related investments are said to be soaring in popularity."